Allahabad Bank offers loan via the Net
allahabadbank.com
(Saturday, August 28, 1999)
Sourav Majumdar in Calcutta
The Calcutta-based Allahabad Bank has begun sanctioning loans on the Internet in a trendsetting move. The bank is offering this only for its educational loan scheme and plans to extend the facility to car and home loans as well.
Of the 146 applications that the bank received for assistance under the educational loans scheme for the semester 1999-2000, 77 applications or over 50 per cent have come in through the Net. The sanctions are being made through the website www.allahabadbank.com.
The mechanism is simple. The website has an interactive application form, where the applicant, who is enrolled with any of the educational institutions eligible under the scheme (including the Indian Institute of Technology (IIT)s, Indian Institute of Management (IIM)s etc), puts in his application, along with the serial number of the institution's enrolment letter. The sanction is then sent back to the applicant online.
While the online sanction is provisional, the applicant is then asked to take his documents and proofs personally to a designated branch where the final formalities are undertaken.
Allahabad Bank chairman Harbhajan Singh told Business Standard "Since the applicants, who are bright students of IITs, IIMs, Bajaj institute and others, live on campuses which are a little away from the cities, it is much easier for them to access our website and get online sanction." Singh said extending this facility to car loans and housing loans by assigning designated branches in cities where applicants can complete the formalities after getting online sanctions will be the bank's next priority. The ultimate aim is overall Internet banking and Allahabad Bank is already busy putting in place a major networking system.
Students of IIM Calcutta and IIT Kharagpur top the list of applicants for Allahabad Bank's new scheme, while Regional engineering College (REC) Rourkee, XLRI Jamshedpur and Jamnalal Bajaj Institute Mumbai, also figure in the list.
Allahabad Bank sources pointed out that earlier the website merely had an application form on the Net, which was not interactive. The applicant could only download the form and post an application physically. However, the bank then decided to make it interactive and include online sanctions for the educational scheme. The bank now anticipates that with the car boom taking place, there would be many takers for online applications for car and home loans. The boom in Asian Internet users is also a factor the bank feels will help its Internet initiative.
Becoming technology-savvy is one of the major objectives of Allahabad Bank. It has achieved Y2K compliance and is in the midst of implementing a 5-year, Rs 60 crore perspective plan for computerisation and modernisation. This is being done under the Modernisation and Institutional Development Loan (MIDL) of the International Bank for Reconstruction and Development (IBRD) for goods and equipment, site preparation, consultancy and training and is expected to result in better operational efficiency and improved customer service.(Business Standard) |
